Book value versus market value components. The CFO of DMI is trying to determine the$$ company's WACC. $$ Brad, a promising$$ MBA, says that the company should use book value to assign the WACC$$ components' percentages. $$ Angela, a$$ long$-$time employee and experienced financial$$ analyst, says that the company should use market value to assign the$$ components' percentages. The$$ after$-$tax cost of debt is at $10\mathrm{.}6\%,$ the cost of preferred stock is at $13\mathrm{.}88\%,$ and the cost of equity is at $17\mathrm{.}77\%.$ Calculate the WACC using both the book value and the market value approaches with the information in the popup$$ window:Click on the Icon $$ in order to copy its content into a spreadsheet.

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